Protest in Miami against home insurance rate hikes

A couple of Miami public insurance adjusters are organizing a protest Saturday against legislation this year that would raise rates and create new restrictions for policyholders filing claims.

Legislators proposing the changes say the bills are needed to strengthen the state's property insurance market, lower claims-related costs, and draw insurers back to the state. They say the changes could lower premiums in the long-term.

But Waldo Faura and Belen Valladares, co-founders Floridians in Action, who are organizing the protest have another perspective: "These bills will lead to job losses, foreclosures, vacancies in an already devastated real estate market," they wrote in a statement.

FIA, like another group, Policyholders of Florida, is organized by people who make a living representing policyholders, so they have a financial stake in the legislation.

Floridians in Action was formed about four years ago and its grassroots organizing may have an impact a few years ago. The Miami Herald reported in early 2007 that the group started a petition that had more than 40,000 names in three months, weeks before the special legislative session in Tallahassee where lawmakers passed a sweeping measure to help reduce property insurance rates.

The protest is aimed at opposing:

SB 1714 and HB 1243, which would allow Citizens Property Insurance Corporation to raise policyholders' premiums by up to 25 percent a year, more than the 10 percent allowed by state law. The House version would also allow the insurer to drop policies for some homes that cost at least $500,000 to replace.

SB 1462 and HB 4115, which would repeal a state law requiring the Insurance Consumer Advocate to grade insurance companies on factors such as claims handling.

SB 1330 and HB 885, which would allow insurers to increase policyholders' premiums by up to 30 percent a year without approval from regulators.

SB 408 and HB 803, which would shorten the time policyholders have to file hurricane and sinkhole claims and allow insurers to drop full sinkhole coverage.